Mutual Fund Management

Mutual Fund Management

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manage mutual funds and other portfolio assets of others on a fee or commission basis. Major companies include BlackRock Funds, Fidelity Investments, and Vanguard (all based in the US), as well as Amundi (France), Investec (South Africa), and Schroders (UK).

COMPETITIVE LANDSCAPE

Demand is affected by the global economic conditions, evolving investment preferences, and demographic trends. The profitability of individual companies depends on investment expertise and effective marketing. Large companies have economies of scale in operations and marketing. Small companies can compete effectively by specializing in desirable sectors and by producing higher investment returns. The US mutual fund industry is concentrated: the 10 largest firms manage 60% of total assets, according to the Investment Company Institute.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include the initial formation of a mutual fund, sales and redemption of shares, investment advisory services, and day-to-day management.